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Sports and Leisure
It's legal to bet on sports in Nevada, and some research suggests that Americans wage at least $500 billion each year on sporting events. However, only about 1% of this betting is legal. In 2013, New Jersey filed a suit to win the right to allow betting on all the major sports. The purpose was to increase state revenue from this billion-dollar business. According to Baseball Press, the mean amount bet on each Major League baseball game is $8.85 million.44 A random sample of Major League baseball games is obtained, and the amount legally bet in Nevada on each game is given in the following table (in millions of dollars).
a. Is there any evidence to suggest that the mean amount bet on Major League baseball games has increased? Assume the distribution is normal and use a = 0.05.
b. Find bounds on the p value associated with this hypothesis test.
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